In a large mixing bowl, stir together the powdered sugar, butter, peanut butter, and vanilla. Fold in the graham cracker crumbs, coconut, and nuts.
Shape mixture into 1-inch balls.
In a small saucepan, melt together the chocolate coating and butterscotch pieces over low heat. Cool slightly.
Dip balls into mixture to coat. Place on waxed paper and let stand at room temperature until coating is firm. If you like, top with decorative sprinkles before coating is firm. Makes about 95 balls.